SEBI Security exchange board established in 1992 by passing the ordinance in the parliament of India.

Indias first law relating to control over security was Control Security issue act 1947 but, it was not fulfilling the desires of Govt . and investors. For securing the interests of Investors, SEBI has established by Central Govt. In India, now it is vital authority to makes all rules and regulations relating to capital market. Main aim and objectives of SEBI is to protect the money of investors from frauds in stock markets. A new investors can easily cheated by expert brokers, So, SEBI knows this point and it has made very strict rules for ceasing such cheating , frauds and malpractices . SEBI never accepts any dodgy transaction which is done by any party in stock exchanges in India. SEBI is the board which is operated by one chairperson and other members which are appointed from following way.

One member is selected from the officers of ministry of finance. One member is selected from the officers of ministry of law. One member is selected from the office of RBI. Other two members are selected by central Govt. Powers of SEBI

1. To make rules and regulation for controlling the stock exchanges in India. 2. To educate brokers and investors. 3. To do amendments in the rules and regulations of stock exchanges in India. 4. To encourage investors of foreign to investment in India. 5. To safeguard the interests of investors. 6. To development the stock and share market in India. 7. To stop all fraud and malpractices in stock exchanges. 8. To reduce the fluctuations in the market prices of shares. 9. To create good relationships among the large numbers of brokers, finance agents and financers. 10. To provide license to brokers for activities in stock exchanges in India. SEBIS ROLE IT is regulator to control Indian capital market. Since its establishment in 1992, it is doing hard work for protecting the interests of Indian investors. SEBI gets education

from past cheating with naive investors of India. Now, SEBI is more strict with those who commit frauds in capital market. The role of security exchange board of India (SEBI) in regulating Indian capital market is very important because government of India can only open or take decision to open new stock exchange in India after getting advice from SEBI. If SEBI thinks that it will be against its rules and regulations, SEBI can ban on any stock exchange to trade in shares and stocks. Now, we explain role of SEBI in regulating Indian Capital Market more deeply with following points: 1. Power to make rules for controlling stock exchange : SEBI has power to make new rules for controlling stock exchange in India. For example, SEBI fixed the time of trading 9 AM and 5 PM in stock market. 2. To provide license to dealers and brokers : SEBI has power to provide license to dealers and brokers of capital market. If SEBI sees that any financial product is of capital nature, then SEBI can also control to that product and its dealers. One of main example is ULIPs case. SEBI said, " It is just like mutual funds and all banks and financial and insurance companies who want to issue it, must take permission from SEBI." 3. To Stop fraud in Capital Market : SEBI has many powers for stopping fraud in capital market It can ban on the trading of those brokers who are involved in fraudulent and unfair trade practices relating to stock market It can impose the penalties on capital market intermediaries if they involve in insider trading. 4. To Control the Merge, Acquisition and Takeover the companies : Many big companies in India want to create monopoly in capital market. So, these companies buy all other companies or deal of merging. SEBI sees whether this merge or acquisition is for development of business or to harm capital market

5. To audit the performance of stock market : SEBI uses his powers to audit the performance of different Indian stock exchange for bringing transparency in the working of stock exchanges. 6. To make new rules on carry - forward transactions Share trading transactions carry forward can not exceed 25% of broker's total transactions 90 day limit for carry forward. 7. To create relationship with ICAI : ICAI is the authority for making new auditors of companies. SEBI creates good relationship with ICAI for bringing more transparency in the auditing work of company accounts because audited financial statements are mirror to see the real face of company and after this investors can decide to invest or not to invest. Moreover, investors of India can easily trust on audited financial reports. After Satyam Scam, SEBI is investigating with ICAI, whether CAs are doing their duty by ethical way or not. 8. Introduction of derivative contracts on Volatility Index : For reducing the risk of investors, SEBI has now been decided to permit Stock Exchanges to introduce derivative contracts on Volatility Index, subject to the condition that; a. The underlying Volatility Index has a track record of at least one year. b. The Exchange has in place the appropriate risk management framework for such derivative contracts. 2. Before introduction of such contracts, the Stock Exchanges shall submit the following: i. Contract specifications ii. Position and Exercise Limits iii. Margins iv. The economic purpose it is intended to serve v. Likely contribution to market development vi. The safeguards and the risk protection mechanism adopted by the exchange to ensure market integrity, protection of investors and smooth and orderly trading.

9. To Require report of Portfolio Management Activities : SEBI has also power to require report of portfolio management to check the capital market performance. Recently, SEBI sent the letter to all Registered Portfolio Managers of India for demanding report. 10. To educate the investors : Time to time, SEBI arranges scheduled workshops to educate the investors. On 22 may 2010 SEBI imposed workshop. If you are investor, you can get education through SEBI leaders by getting update information on this page. Organization structure OF SEBI Chandrasekhar Bhaskar Bhave is the sixth chairman of the Securities Market Regulator. Prior to taking charge as Chairman SEBI, he had been the chairman of NSDL (National Securities Depository Limited) ushering in paperless securities. Prior to his stint at NSDL, he had served SEBI as a Senior Executive Director. The Board compris Name C B Bhave KP Krishnan Designation Chairman SEBI As per CHAIRMAN

Joint Secretary, Ministry of Finance Member Member Member

Mohandas Pai Director, Infosys Prashant Saran Whole Time Member, SEBI Functions and responsibilities

SEBI has to be responsive to the needs of three groups, which constitute the market:

the issuers of securities the investors the market intermediaries.

SEBI has three functions rolled into one body quasi-legislative, quasi-judicial and quasiexecutive. It drafts regulations in its legislative capacity, it conducts investigation and enforcement action in its executive function and it passes rulings and orders in its judicial

capacity. Though this makes it very powerful, there is an appeals process to create accountability. There is a Securities Appellate Tribunal which is a three-member tribunal and is presently headed by a former Chief Justice of a High court - Mr. Justice NK Sodhi. A second appeal lies directly to the Supreme Court. SEBI has enjoyed success as a regulator by pushing systemic reforms aggressively and successively (e.g. the quick movement towards making the markets electronic and paperless rolling settlement on T+2 basis). SEBI has been active in setting up the regulations as required under law. SEBI has also been instrumental in taking quick and effective steps in light of the global meltdown and the Satyam fiasc. It h asincreased the extent and quantity of disclosures to be made by Indian corporate promoters. More recently, in light of the global meltdown,it liberalised the takeover code to facilitate investments by removing regulatory strictures. In one such move, SEBI has increased the application limit for retail investors to Rs 2 lakh, from Rs 1 lakh at present Bombay Stock Exchange

Owner Key people Currency No. of lstings Indexes Website

Bombay Stock Exchange Limited Madhu Kannan (CEO & MD) Indian rupee ( ) 4,996 BSE Sensex www.bseindia.com

The Bombay Stock Exchange (BSE) (Hindi: Bombay hare Bzar) (formerly, The Stock Exchange, Bombay) is the oldest stock exchange in Asia and has the largest number of listed companies in the world, with 4990 listed as of August 2010 . It is located at Dalal Street, Mumbai, India. On Aug, 2010, the equity market capitalization of the companies listed on the BSE was US$1.78 trillion, making it the 4th largest stock exchange in Asia and the 11th largest in the worldIt also been rated as worlds best performing stock mar

With over 4,996 Indian companies listed & over 7700 scrips on the stock exchange[.it has a significant trading volume. The BSE SENSEX (SENSitive indEX), also called the "BSE 30", is a widely used market index in India and Asia. Though many other exchanges exist, BSE and the National Stock Exchange of India account for most of the trading in shares in India The National Stock Exchange (NSE) (Hindi: Rashtriya hare Bzar) is a stock exchange located at Mumbai, India. It is the largest stock exchange in India in terms of daily turnover and number of trades, for both equities and derivative trading.NSE has a market capitalization of around 7,262,507 crore (US$ 1,648.59 billion) (October 2010) and was expected to become the biggest stock exchange in India in terms of market capitalization by 2009 end[3], although this has not yet occurred. Though a number of other exchanges exist, NSE and the Bombay Stock Exchange are the two most significant stock exchanges in India, and between them are responsible for the vast majority of share transactions. The NSE's key index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by market capitalisation. NSE is mutually-owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities.[4] There are at least 2 foreign investors NYSE Euronext and Goldman Sachs who have taken a stake in the NSE.[5] As of 2006, the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India.[6] In October 2007, the equity market capitalization of the companies listed on the NSE was US$ 1.46 trillion, making it the second largest stock exchange in South Asia. NSE is the third largest Stock Exchange in the world in terms of the number of trades in equities.[7] It is the second fastest growing stock exchange in the world with a recorded growth of 16.6%.[8] Markets Currently, NSE has the following major segments of the capital market:

Equity Futures and Options Retail Debt Market Wholesale Debt Market Currency futures MUTUAL FUND

STOCKS LENDING & BORROWINGIndices NSE also set up as index services firm known as India Index Services & Products Limited (IISL) and has launched several stock indices, including

S&P CNX Nifty(Standard & Poor's CRISIL NSE Index) CNX Nifty Junior CNX 100 (= S&P CNX Nifty + CNX Nifty Junior)

S&P CNX 500 (= CNX 100 + 400 major players across 72 industries) CNX Midcap (introduced on 18 July 2005 replacing CNX Midcac

India

United States
Amex indices, Dow Jones & Company indices

S&P CNX Nifty BSE Sensex BSE 200 BSE 500 BSE IT BSE FMCG BSE CD BSE Metal BSE PSUBSE mid-cap BSE small cap

Japan

Nikkei 225 Topix

Hong Kong
Hang Seng Index

The gross domestic product (GDP) or gross domestic income (GDI) is the amount of goods and services produced in a year, in a country. It is the market value of all final goods and services made within the borders of a country in a year. It is often positively correlated with the standard of living,[1] alternative measures to GDP for that purpose.[2] GDP can be determined in three ways, all of which should in principle give the same result. They are the product (or output) approach, the income approach, and the expenditure approach. GDP = private consumption + gross investment + government spending + (exports imports), or Components of GDP by expenditure GDP (Y) is a sum of Consumption (C), Investment (I), Government Spending (G) and Net Exports (X - M). Y = C + I + G + (X M)

Here is a description of each GDP component:

C (consumption) is normally the largest GDP component in the economy, consisting of private (household final consumption expenditure) in the economy. These personal expenditures fall under one of the following categories: durable goods, non-durable goods, and services. Examples include food, rent, jewelry, gasoline, and medical expenses but does not include the purchase of new housing. I (investment) includes business investment in equipments for example and does not include exchanges of existing assets. Examples include construction of a new mine, purchase of software, or purchase of machinery and equipment for a factory. Spending by households (not government) on new houses is also included in Investment. In contrast to its colloquial meaning, 'Investment' in GDP does not mean purchases of financial products. Buying financial products is classed as 'saving', as opposed to investment. This avoids double-counting: if one buys shares in a company, and the company uses the money received to buy plant, equipment, etc., the amount will be counted toward GDP when the company spends the money on those things; to also count it when one gives it to the company would be to count two times an amount that only corresponds to one group of products. Buying bonds or stocks is a swapping of deeds, a transfer of claims on future production, not directly an expenditure on products. G (government spending) is the sum of government expenditures on final goods and services. It includes salaries of public servants, purchase of weapons for the military, and any investment expenditure by a government. It does not include any transfer payments, such as social security or unemployment benefits. X (exports) represents gross exports. GDP captures the amount a country produces, including goods and services produced for other nations' consumption, therefore exports are added. M (imports) represents gross imports. Imports are subtracted since imported goods will be included in the terms G, I, or C, and must be deducted to avoid counting foreign supply as domestic.

A fully equivalent definition is that GDP (Y) is the sum of final consumption expenditure (FCE), gross capital formation (GCF), and net exports (X - M). Y = FCE + GCF+ (X M) Gross national income (GNI) comprises the total value produced within a country (i.e. its gross domestic product), together with its income received from other countries (notably interest and dividends), less similar payments made to other countries.[1] The GNI consists of: the personal consumption expenditures, the gross private investment, the government consumption expenditures, the net income from assets abroad (net income receipts), gross domestic product per capita at nominal values, the value of all final goods and services produced within a nation in a given year, converted at market exchange rates to current U.S. dollars, divided by the average (or mid-year) population for the same year.

The figures presented here do not take into account differences in the cost of living in different countries, and the results can vary greatly from one year to another based on fluctuations in the exchange rates of the country's currency. Such fluctuations may change a country's ranking from one year to the next, even though they often make little or no difference to the standard of living of its population. Therefore these figures Rank Country US$ should be used with caution. 1 2 3 4 5 6 7 8 9 137 india Luxembourg Norway Qatar[4] Switzerland Denmark Australia Sweden 104,390 84,543 74,422 67,074 55,113 54,869 47,667 All data are in United States dollars. By International Monetary Fund (2010[1]

United Arab Emirates 47,406 United States 47,132

PPP An economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power. The relative version of PPP is calculated as:

Where: "S" represents exchange rate of currency 1 to currency 2

"P1" represents the cost of good "x" in currency 1 "P2" represents the cost of good "x" in currency 2 the exchange rate adjusts so that an identical good in two different countries has the same price when expressed in the same currency. For example, a chocolate bar that sells for C$1.50 in a Canadian city should cost US$1.00 in a U.S. city when the exchange rate between Canada and the U.S. is 1.50 USD/CDN. (Both chocolate bars cost US$1.00.). gross domestic product (GDP) at purchasing power parity (PPP) per capita, the value of all final goods and services produced within a nation in a given year divided by the average (or mid-year) population for the same year. GDP dollar estimates here are derived from purchasing power parity (PPP) calculations. Such calculations are prepared by various organizations, including the International Monetary Fund and the World Bank. All figures are in current international dollars. International Monetary Fund (2009)] Rank Country Intl. $

1 Luxembourg 2 3 4 5 6 Qatar Norway

78,409 78,260 51,985

Singapore 50,180 Brunei United States Hong Kong 47,930 45,934

42,653

Switzerland

40,484

8 Netherlands 9 10 Ireland Australia

39,877 38,685 38,663 127 India 3,015

Need for PPP adjustments to GDP

The exchange rate reflects transaction values for traded goods among countries in contrast to non-traded goods, that is, goods produced for home-country use. Also, currencies are traded for purposes other than trade in goods and services, e.g., to buy capital assets whose prices vary more than those of physical goods. Also, different interest rates, speculation, hedging or interventions by central banks can influence the foreign-exchange market. The PPP method is used as an alternative to correct for possible statistical bias. The Penn World Table is a widely cited source of PPP adjustments, and the so-called Penn effect reflects such a systematic bias in using exchange rates to outputs among countries. For example, if the value of the Mexican peso falls by half compared to the U.S. dollar, the Mexican Gross Domestic Product measured in dollars will also halve. However, this exchange rate results from international trade and financial markets. It does not necessarily mean that Mexicans are poorer by a half; if incomes and prices measured in pesos stay the same, they will be no worse off assuming that imported goods are not essential to the quality of life of individuals. Measuring income in different countries using PPP exchange rates helps to avoid this problem. PPP exchange rates are especially useful when official exchange rates are artificially manipulated by governments. Countries with strong government control of the economy sometimes enforce official exchange rates that make their own currency artificially strong. By contrast, the currency's black market exchange rate is artificially weak. In such cases a PPP exchange rate is likely the most realistic basis for economic comparison.